Fuel oil cracks softened in Asia on Thursday, while several spot tenders for August fuel oil sales closed, industry sources said.
South Korea’s S-Oil offered a 300,000-barrels cargo of light cycle oil for loading between Aug. 21-25, as well as two slurry cargoes for loading between Aug. 11-15 and Aug. 27-31, each of 22,000 metric tons.
India’s BPCL offered 20,000 tons of very low sulphur fuel oil (VLSFO) for loading between Aug. 6-9 from Mumbai port.
Thailand’s PTT offered 28,000 tons of fuel oil for loading from Sriracha, between Aug. 23-27.
Spot premiums for fuel oil were largely rangebound on Thursday, though the overall market weakened. Backwardation spreads for prompt trading months narrowed, showed data from LSEG.
Refining margins for fuel oil softened despite lower crude prices.
Cracks for the 380-cst high-sulphur grade eased to discounts of about $4.90 per barrel, while low-sulphur cracks fell to premiums of around $11.60 per barrel.
INVENTORY DATA
– Singapore onshore inventories dipped 1.4% to a two-week low, reaching 19.86 million barrels (3.13 million tons) in the week ended July 24, as exports rose more than imports, Enterprise Singapore data showed.
– Oil prices traded around their lowest level in six weeks on Wednesday, as the northern hemisphere gets deeper into summer with limited signs of the expected fuel consumption surge the period usually sees.
– Saudi Arabia imported fuel oil from Kuwait for the first time in more than two years in July to help meet peak summer power demand while discounted supplies from Russia fell, according to trade sources and shipping data.
– A marine tanker carrying industrial fuel sank in rough seas off the Philippines on Thursday, causing a large oil spill as coast guard rescuers search for a missing crew member, officials said.
– Singapore’s Energy Market Authority and the Maritime and Port Authority of Singapore have shortlisted two consortia for the next proposal evaluation round of an ammonia power and bunkering project, they said in a joint statement on Thursday.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Maju Samuel)